North Carolina Down Payment Assistance Programs

Payments Gateway - These systems will be the Down Payment Assistance System as well as the Mortgage Credit Certificate.

You buy a property between January 1, 2009 and December 1, 2009 and should you qualify for one of those programs, it is also possible to qualify for the $8,000 tax credit merely enacted into law.

First, who's a First Time Home Buyer? There is a first-time Home Buyer someone who hasn't owned a house in the previous three years. That is precisely the same qualifying definition.

What's a Mortgage Credit Certificate and Who Qualifies?

All home owners can claim an itemized deduction. An MCC “reduces your tax liability based on a share of the mortgage interest which you pay.

If you qualify for the MCC, it is possible to claim 20% of the interest you pay as a credit on your own federal income taxes on your mortgage. You are able to save around .

You will have the ability to join this with the $8,000 tax credit should you qualify for 2009. This could reduce a purchaser's tax liability .

Who Qualifies for an MCC?

Household income is defined as the “gross income of the mortgagor and any person anticipated to live in the home who is 18 years old or older.”

The income and house price limitations that apply in Durham Orange and Chatham Counties are given below.

MCC Income Limits 1 Person $61,500 2 Men $61,500 3 Men $70,500 4 Persons $70,500

MCC Sales Price Limitations New House $220,000 Existing House $210,000

The customer only has to pay $1,000 of their own funds and the load would pay as much as $8,000 of the remaining balance.

This plan has more rigorous income limitations than the MCC plan summarized above. Like the MCC application, it may be used together with all the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The deposit assistance, nonetheless, can not be utilized in combination with all the MCC. This is an either or scenario.

The income and house price limits Durham and Chatham Counties are listed below.

Down Payment Assistance Income Limitations

1 Person $39,950 2 Men $45,650 3 Persons $51,350 4 Persons $57,050

Down Payment Support Sales Price Limits New Dwelling $210,000 Existing Dwelling $210,000